Newton Running, which abruptly closed its flagship Pearl Street Mall store last month, has launched a major reorganization which includes the departure of its cofounder Danny Abshire, according to a report in Runner's World.

The report was confirmed by company spokesman Michael Doyle.

Doyle said cofounder and investor Jerry Lee has returned to lead the venture as chairman of the board temporarily.

"We don't know what the long-term plan is," said Doyle, but he confirmed that the company's primary financial backer, Fireman Capital Partners, is no longer involved and that company executives are in the process of forming a new investor group.

Boulder-based Newton was privately owned by cofounder Lee and Boston-based Fireman Capital Partners, which made a $20 million minority investment in the company in 2011.

Newton moved into the 3,300-square-foot space formerly occupied by the now-bankrupt GoLite in late February 2015. Co-founder Danny Abshire told the Camera at the time the move would expose the niche brand, founded in 2007, to a larger consumer base.

It also allowed Newton more room, being nearly twice as large as its previous retail space. The store began selling apparel and other athletic gear.

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There have been few details surrounding the recent retail closure, but in October 2015, the company laid off an unknown number of staff in a restructuring. Lee also stepped down as CEO, retaining his position as chairman of the board.

But the street retail scene proved a tough one to make profitable, Doyle said, forcing the company to re-evaluate its strategy and to focus on its other customers across the country, who are specialty running stores.

"Rents are increasing and it's becoming more and more difficult to be in retail," Doyle said.

Doyle also said that though Abshire, who was responsible for running the Pearl Street store and lab, has left the company for now, he may return.

"The door could be potentially open," Doyle said. "This doesn't preclude him from coming back."

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